Lex Luz

Is Bernanke Hinting Something About the Fed's Rate Plans?

I'm curious - and freely admit to very limited knowledge here - about how the Fed's statements today help to strengthen the dollar. On their face these statements and the implied policy (in)action would seem in my view to weaken the dollar further. In essence, the Fed seems to be continuing to say, "we'll take your crap MBS in trade for treasuries." If this is the case, and if the dollar is as a result backed by near-worthless securities, and if furthermore the Fed intends to throw as many buckets of money out of their helicopters as possible now and into the forseeable future, how is it that the dollar gains strength?

I am quite sure that there's something I'm missing here and would appreciate some education on this. No sarcasm implied despite my strong language. Thanks.

John Hussman: Fiscal Policy Is the Key

When the Executive directs a cowed Congress to pay for a multi-trillion-dollar war, the Executive must share some of the responsibility for ill-considered fiscal policy. No question Congress could, in theory, draw a line in the sand, but to be fair responsibility for our disastrous fiscal policy of the past thirty-plus years must be spread much farther. It's your last sentence that to me has the greatest ring of truth: we are seeing the enemy, and it is us.